Canadian Home Sales Remain Steady Amid Mixed Provincial Trends

Canadian home sales showed minimal change in November, as a decline in activity across several provinces was counterbalanced by gains in the West. According to the National Bank of Canada, overall sales activity remains below historical averages, but easing monetary policies and a robust labour market are anticipated to bolster housing demand in the near future.

Nationwide, home sales were largely flat from October to November, following a slight increase of 0.9% in the previous month. The data reveals that transactions decreased in seven of the ten provinces, including Nova Scotia, Prince Edward Island, Newfoundland, New Brunswick, Quebec, Ontario, and Manitoba. In contrast, notable increases were observed in British Columbia, Alberta, and Saskatchewan.

Despite a surge in real estate activity earlier in the year, sales have remained relatively stable since July, even as the Bank of Canada implemented policy rate cuts in the fall. Currently, home sales are approximately 7.6% below their most recent peak recorded in November 2022, reflecting ongoing trade uncertainties that continue to impact the market.

Looking ahead, the outlook for the residential market appears optimistic. Economists from the National Bank project that cumulative decreases in the policy rate, combined with improvements in the labour market, should help sustain transaction levels in the coming months.

As housing demand fluctuates, the Canadian real estate market will need to adapt to these evolving economic conditions. The combination of monetary easing and a strengthening job market may provide the necessary support for recovery, encouraging potential buyers and fostering a more vibrant housing landscape.